The global dairy market faces low growth in 2024 due to inflation and declining GDP. However, trends such as the rise of private label products, plant-based alternatives, and convenient dairy options are driving change. Health-conscious consumers, sustainability concerns, and demand for functional foods are reshaping the dairy industry through 2025.
The global dairy products and alternatives market is facing a period of low growth, with inflation and declining GDP growth rates impacting the industry in 2024. According to Euromonitor, a global market research company, the outlook for dairy growth is subdued, but several key trends are shaping the future of dairy through 2025.
One significant trend is the rise of private label products, which have gained substantial traction as consumers prioritize affordability. With economic pressures, private label dairy products have expanded their presence, offering consumers budget-friendly yet high-quality options. As a result, the global value share of private label dairy is expected to reach 14.9% in 2024, up from 12.8% in 2019.
Health and Sustainability Driving Change
Euromonitor’s Voice of the Consumer: Lifestyles Survey reveals that 54% of global consumers prioritize healthy ingredients in their food choices. This shift toward health-conscious eating is influencing the dairy sector, with products like probiotic yogurt becoming increasingly popular for their digestive and immune health benefits. Manufacturers are responding by expanding their kefir offerings with new textures, packaging, and flavors to cater to growing consumer demand for health-focused dairy products.
Additionally, the plant-based dairy segment is experiencing steady growth, driven by health, environmental, and animal welfare concerns. Plant-based dairy products are expected to grow at a 4.1% compound annual growth rate (CAGR) between 2024 and 2029. This surge is particularly evident among vegan and vegetarian consumers, who are attracted to plant-based dairy alternatives that offer higher protein content and are seen as more sustainable options. However, challenges remain in producing plant-based products without relying on preservatives and artificial ingredients.
Convenience and On-the-Go Dairy Products
Convenience is another key factor driving change in the dairy market. As consumer lifestyles become busier, dairy products designed for convenience, such as yogurt sticks, drinkable dairy, and portable cheese options, are thriving. Nearly two-thirds of consumers are seeking ways to simplify their lives, with nearly 50% willing to pay more for time-saving solutions. On-the-go dairy options, particularly those targeting active consumers, are growing in popularity as a result.
The rise of plant-based alternatives and convenient dairy products reflects broader consumer concerns around health, sustainability, and the desire for functional foods. In response, dairy producers are increasingly adopting eco-friendly practices such as reducing emissions, minimizing waste, and using sustainable packaging to meet the growing demand for sustainably sourced, natural products.
The Shift Toward Sustainability
Sustainability is another growing priority among consumers, with nearly two-thirds of global shoppers prioritizing it in their purchasing decisions. Concerns over climate change and animal welfare are prompting a shift toward locally sourced, sustainably produced dairy products. In turn, dairy producers are focusing on reducing their environmental impact through more eco-conscious practices and transparent, sustainable sourcing.
As the dairy market faces challenges in 2024, these trends in health, convenience, sustainability, and affordability are driving the evolution of the industry. Companies across the globe are adapting to these changing consumer demands, with a focus on providing healthier, more sustainable, and more convenient dairy options.
In summary, while the dairy industry may experience low growth in 2024, the future looks promising, with key trends like plant-based alternatives, convenience products, and private label dairy reshaping the market through 2025.